In a recently released report by Fitch Ratings, Egypt’s response to February’s donor conference in Sharm Al Sheikh was highlighted. Fitch forecasted that Egypt’s big currency earners, including tourism, the Suez Canal and workers’ remittances will all be considerately affected by the global recession.
According to the report, Suez Canal reports fell by 10 percent in last quarter of 2001 compared with figures from the previous year and the number of tourists in the first 11 months of 2001 fell by 20 percent compared with the whole year of 2000.
Fitch has recommended that an improvement in the authorities’ management of the exchange rate will be crucial for ensuring the economy benefits more fully from the $10.3 billion allocated by donors.
This past January, Fitch gave the Egyptian economy a negative assessment, stating tensions in the economic policy framework as its main concern. The international rating firm expressed concern that national GDP may come in lower than official four percent estimates, and that the general government deficit may widen to approximately three percent of GDP, according to Prime Securities. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
